CHAPTER XIV
PROCEDURE FOR ASSESSMENT96
Return of income.
97139. 98[(1) Every person99,—
(a) being a company 1[or a
firm]; or
(b) being a person other than a company 1[or a firm], if his total income or the
total income of any other person in respect of which he is assessable under
this Act during the previous year exceeded the maximum amount which is not
chargeable to income-tax,
shall, on or before the due date, furnish a return of
his income or the income of such other person during the previous year, in the
prescribed2 form and verified in
the prescribed manner and setting forth such other particulars as may be
prescribed :
Provided that a person referred to in
clause (b), who is not required to furnish a return under this
sub-section and residing in such area as may be specified by the Board in this
behalf by notification3 in the
Official Gazette, and who 4[during
the previous year incurs an expenditure of fifty thousand rupees or more
towards consumption of electricity or] at any time during the previous year
fulfils any one of the following conditions, namely :—
(i) is in occupation of an immovable property
exceeding a specified floor area, whether by way of ownership, tenancy or
otherwise, as may be specified5 by
the Board in this behalf; or
(ii) is the owner or the lessee of a motor vehicle
other than a two-wheeled motor vehicle, whether having any detachable side car
having extra wheel attached to such two-wheeled motor vehicle or not; or
(iii) 6[***]
(iv) has incurred expenditure for himself or any
other person on travel to any foreign country; or
(v) is the holder of a credit card7, not being an “add-on” card, issued by
any bank or institution; or
(vi) is a member of a club where entrance fee
charged is twenty-five thousand rupees or more,
shall furnish a return, of his income 8[during any previous year ending before
the 1st day of April, 2005], on or before the due date in the prescribed form9 and verified in the prescribed manner and
setting forth such other particulars as may be prescribed :
Provided further that the Central
Government may, by notification10
in the Official Gazette, specify the class or classes of persons to whom the
provisions of the first proviso shall not apply:
Provided also that every company 11[or a firm] shall furnish on or before
the due date the return in respect of its income or loss in every previous year
:
11[Provided
also that every person, being an individual or a Hindu
undivided family or an association of persons or a body of individuals, whether
incorporated or not, or an artificial juridical person, if his total income or
the total income of any other person in respect of which he is assessable under
this Act during the previous year, without giving effect to the provisions of section 10A or section 10B
or section 10BA or Chapter VI-A exceeded the
maximum amount which is not chargeable to income-tax, shall, on or before the
due date, furnish a return of his income or the income of such other person
during the previous year, in the prescribed form and verified in the prescribed
manner and setting forth such other particulars as may be prescribed.]
Explanation 1.—For the
purposes of this sub-section, the expression “motor vehicle” shall have the
meaning assigned to it in clause (28) of
section 2 of the Motor Vehicles Act, 1988 (59 of 1988).
Explanation 2.—In this
sub-section, “due date” means,—
(a) where the assessee is—
(i) a company; or
(ii) a person (other than a company) whose
accounts are required to be audited under this Act or under any other law for
the time being in force; or
(iii) a working partner of a firm whose accounts
are required to be audited under this Act or under any other law for the time
being in force,
the
12[30th day of September] of the
assessment year;
(b) in the case of a person other than a company,
referred to in the first proviso to this sub-section, the 31st day of October
of the assessment year;
(c) in the case of any other assessee, the 31st
day of July of the assessment year.
Explanation 3.—For the
purposes of this sub-section, the expression “travel to any foreign country”
does not include travel to the neighbouring countries or to such places of
pilgrimage as the Board may specify in this behalf by notification13 in the Official Gazette.]
14[(1A)
Without prejudice to the provisions of sub-section (1), any person, being an
individual who is in receipt of income chargeable under the head “Salaries”
may, at his option, furnish a return of his income for any previous year to his
employer, in accordance with such scheme as may be specified by the Board in
this behalf, by notification in the Official Gazette15, and subject to such conditions as may
be specified therein, and such employer shall furnish all returns of income
received by him on or before the due date, in such form (including on a floppy,
diskette, magnetic cartridge tape, CD-ROM or any other computer readable media)
and manner as may be specified in that scheme, and in such case, any employee
who has filed a return of his income to his employer shall be deemed to have
furnished a return of income under sub-section (1), and the
provisions of this Act shall apply accordingly.]
16[***]]
17[(1B)
Without prejudice to the provisions of sub-section (1), any person, being a
company or being a person other than a company, required to furnish a return of
income under sub-section (1), may, at his option, on or before the due date,
furnish a return of his income for any previous year in accordance with such
scheme as may be specified by the Board in this behalf by notification in the
Official Gazette18 and subject to
such conditions as may be specified therein, in such form (including on a
floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable
media) and in the manner as may be specified in that scheme, and in such case,
the return of income furnished under such scheme shall be deemed to be a return
furnished under sub-section (1), and the provisions of this Act shall apply
accordingly.]
19[***]
(3) If
any person who 20[***] has
sustained a loss in any previous year under the head “Profits and gains of
business or profession” or under the head “Capital gains” and claims that the
loss or any part thereof should be carried forward under sub-section (1) of section 72, or sub-section (2) of section 73, or sub-section (1) 21[or sub-section (3)] of section 74, 22[or
sub-section (3) of section 74A], he may furnish,
within the time allowed under sub-section (1) 23[***],
a return of loss in the prescribed form24
and verified in the prescribed manner and containing such other particulars as
may be prescribed, and all the provisions of this Act shall apply as if it were
a return under sub-section (1).
25[(4) Any person who has not
furnished a return within the time allowed26
to him under sub-section (1), or within the time allowed under a notice issued
under sub-section (1) of section 142, may furnish
the return for any previous year at any time26
before the expiry of one year from the end of the relevant assessment year or
before the completion of the assessment, whichever is earlier :
Provided that
where the return relates to a previous year relevant to the assessment year
commencing on the 1st day of April, 1988, or any earlier assessment year, the
reference to one year aforesaid shall be construed as a reference to two years
from the end of the relevant assessment year.]
27[28[(4A) 29Every
person in receipt of income derived from property held under trust or other
legal obligation wholly for charitable or religious purposes or in part only
for such purposes, or of income being voluntary contributions referred to in
sub-clause (iia) of clause (24) of section 2, shall, if the total income in respect of
which he is assessable as a representative assessee (the total income for this
purpose being computed under this Act without giving effect to the provisions
of sections 11 and 12)
exceeds the maximum amount which is not chargeable to income-tax, furnish a
return of such income of the previous year in the prescribed form and verified
in the prescribed manner and setting forth such other particulars as may be
prescribed and all the provisions of this Act shall, so far as may be, apply as
if it were a return required to be furnished under sub-section (1).]]
30[(4B) 31The chief executive officer (whether
such chief executive officer is known as Secretary or by any other designation)
of every political party shall, if the total income in respect of which the
political party is assessable (the total income for this purpose being computed
under this Act without giving effect to the provisions of section 13A) exceeds the maximum amount which is not
chargeable to income-tax, furnish a return of such income of the previous year
in the prescribed form and verified in the prescribed manner and setting forth
such other particulars as may be prescribed and all the provisions of this Act,
shall, so far as may be, apply as if it were a return required to be furnished
under sub-section (1).]
32[(4C)
Every—
(a) 32a[scientific
research association] referred to in clause (21) of section 10;
(b) news agency referred to in clause (22B) of section 10;
(c) association or institution referred to in
clause (23A) of section 10;
(d) institution referred to in clause (23B) of section 10;
(e) fund or institution referred to in sub-clause
(iv) or trust or institution referred to in sub-clause (v) or any
university or other educational institution referred to in 33[sub-clause (iiiad) or]
sub-clause (vi) or any hospital or other medical institution
referred to in 33[sub-clause (iiiae) or]
sub-clause (via) of clause (23C) of section 10;
(f) trade union referred to in sub-clause (a) or
association referred to in sub-clause (b) of
clause (24) of section 10,
shall, if the total income in respect of which such 32a[scientific
research association], news agency, association or institution, fund or
trust or university or other educational institution or any hospital or other
medical institution or trade union is assessable, without giving effect to the
provisions of section 10, exceeds the maximum
amount which is not chargeable to income-tax, furnish a return of such income
of the previous year in the prescribed form34
and verified in the prescribed manner and setting forth such other particulars
as may be prescribed and all the provisions of this Act shall, so far as may
be, apply as if it were a return required to be furnished under sub-section
(1).]
35[(4D)
Every university, college or other institution referred to in clause (ii) and
clause (iii) of sub-section (1) of section
35, which is not required to furnish return of income or loss under any
other provision of this section, shall furnish the return in respect of its
income or loss in every previous year and all the provisions of this Act shall,
so far as may be, apply as if it were a return required to be furnished under
sub-section (1).]
36[(5) If any person, having
furnished a return under sub-section (1), or in pursuance of a notice issued
under sub-section (1) of section 142, discovers
any omission or any wrong statement therein, he may furnish a revised return at
any time before the expiry of one year from the end of the relevant assessment
year or before the completion of the assessment, whichever is earlier :
Provided that
where the return relates to the previous year relevant to the assessment year
commencing on the 1st day of April, 1988, or any earlier assessment year, the
reference to one year aforesaid shall be construed as a reference to two years
from the end of the relevant assessment year.]
37[(6) The prescribed form of the
returns referred to 38[in
sub-sections (1) and (3) of this section, and in clause (i) of
sub-section (1) of section 142] shall, in such
cases as may be prescribed, require the assessee to furnish the particulars of
income exempt from tax, assets of the prescribed nature 39[, value and belonging to him, his bank
account and credit card held by him], expenditure exceeding the prescribed
limits incurred by him under prescribed heads and such other outgoings as may
be prescribed.
(6A)
Without prejudice to the provisions of sub-section (6), the prescribed form of
the returns referred to 40[in 41[***] this section, and in clause (i) of
sub-section (1) of section 142] shall, in the case
of an assessee engaged in any business or profession, also require him to
furnish 42[the report of any audit
43[referred to in section 44AB, or, where the report has been
furnished prior to the furnishing of the return, a copy of such report together
with proof of furnishing the report], the] particulars of the location and
style of the principal place where he carries on the business or profession and
all the branches thereof, the names and addresses of his partners, if any, in
such business or profession and, if he is a member of an association or body of
individuals, the names of the other members of the association or the body of
individuals and the extent of the share of the assessee and the shares of all
such partners or the members, as the case may be, in the profits of the
business or profession and any branches thereof.]
(7) 44[***]
45[46(8)(a) 47[Where the return under sub-section (1)
or sub-section (2) or sub-section (4) for an assessment year is furnished after
the specified date, or is not furnished, then [whether or not the 48[Assessing] Officer has extended the
date for furnishing the return under sub-section (1) or sub-section (2)], the
assessee shall be liable to pay simple interest at 49[fifteen] per cent per annum, reckoned
from the day immediately following the specified date to the date of the
furnishing of the return or, where no return has been furnished, the date of
completion of the assessment under section 144, on
the amount of the tax payable on the total income as determined on regular
assessment, as reduced by the advance tax, if any, paid, and any tax deducted
at source :
Provided that
the 50[Assessing] Officer may, in
such cases and under such circumstances as may be prescribed51, reduce or waive the interest payable
by any assessee under this sub-section.
Explanation
1.—For the purposes of this sub-section, “specified date”, in relation to
a return for an assessment year, means,—
(a) in the case of every assessee whose total
income, or the total income of any person in respect of which he is assessable
under this Act, includes any income from business or profession, the date of
the expiry of four months from the end of the previous year or where there is
more than one previous year, from the end of the previous year which expired
last before the commencement of the assessment year or the 30th day of June of
the assessment year, whichever is later;
(b) in the case of every other assessee, the 30th
day of June of the assessment year.]
52[Explanation 2.—Where,
in relation to an assessment year, an assessment is made for the first time under
section 147, the assessment so made shall be
regarded as a regular assessment for the purposes of this sub-section.]
53[(b) Where
as a result of an order under section 147 or section 154 or section 155
or section 250 or section
254 or section 260 or section
262 or section 263 or section
264 54[or an order of the
Settlement Commission under sub-section (4) of section
245D], the amount of tax on which interest was payable under this
sub-section has been increased or reduced, as the case may be, the interest
shall be increased or reduced accordingly, and—
(i) in a case where the interest is increased,
the 55[Assessing] Officer shall
serve on the assessee, a notice of demand in the prescribed form specifying the
sum payable, and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall
apply accordingly;
(ii) in a case where the interest is reduced, the
excess interest paid, if any, shall be refunded.]]
56[(c) The
provisions of this sub-section shall apply in respect of the assessment for the
assessment year commencing on the 1st day of April, 1988, or any earlier assessment
year, and references therein to the other provisions of this Act shall be
construed as references to the said provisions as they were applicable to the
relevant assessment year.]
57[(9) Where the 58[Assessing] Officer considers that the
return of income furnished by the assessee is defective, he may intimate the
defect to the assessee and give him an opportunity to rectify the defect within
a period of fifteen days from the date of such intimation or within such
further period which, on an application made in this behalf, the 58[Assessing] Officer may, in his
discretion, allow; and if the defect is not rectified within the said period of
fifteen days or, as the case may be, the further period so allowed, then,
notwithstanding anything contained in any other provision of this Act, the
return shall be treated as an invalid return and the provisions of this Act
shall apply as if the assessee had failed to furnish the return :
Provided that
where the assessee rectifies the defect after the expiry of the said period of
fifteen days or the further period allowed, but before the assessment is made,
the 58[Assessing] Officer may
condone the delay and treat the return as a valid return.
Explanation.—For
the purposes of this sub-section, a return of income shall be regarded as
defective unless all the following conditions are fulfilled, namely :—
58a(a) the annexures, statements and columns in the
return of income relating to computation of income chargeable under each head
of income, computation of gross total income and total income have been duly
filled in;
58a(b) the return is accompanied by a statement
showing the computation of the tax payable on the basis of the return;
59[(bb) 58athe
return is accompanied by the report of the audit referred to in section 44AB, or, where the report has been
furnished prior to the furnishing of the return, by a copy of such report
together with proof of furnishing the report;]
(c) 58athe
return is accompanied by proof of—
(i) the tax, if any, claimed to have been
deducted 60[or collected] at
source 61[***] and the advance tax
and tax on self-assessment, if any, claimed to have been paid :
62[Provided that where the return
is not accompanied by proof of the tax, if any, claimed to have been deducted 63[or collected] at source, the return of
income shall not be regarded as defective if—
64[(a) a certificate for tax deducted or collected
was not furnished under section 203 or section 206C to the person furnishing his return of
income;]
(b) such certificate is produced within a period of
two years specified under sub-section (14) of section
155;]
(ii) the amount of compulsory deposit, if any,
claimed to have been made under the Compulsory Deposit Scheme (Income-tax Payers)
Act, 1974 (38 of 1974);
(d) where regular books of account are maintained
by the assessee, the return is accompanied by copies of—
(i) manufacturing account, trading account,
profit and loss account or, as the case may be, income and expenditure account
or any other similar account and balance sheet;
(ii) in the case of a proprietary business or
profession, the personal account of the proprietor; in the case of a firm,
association of persons or body of individuals, personal accounts of the
partners or members; and in the case of a partner or member of a firm,
association of persons or body of individuals, also his personal account in the
firm, association of persons or body of individuals;
(e) where the accounts of the assessee have been
audited, the return is accompanied by copies of the audited profit and loss
account and balance sheet and the auditor’s report 65[and, where an audit of cost accounts of
the assessee has been conducted, under section 233B66 of the Companies Act, 1956 (1 of 1956),
also the report under that section];
(f) where regular books of account are not
maintained by the assessee, the return is accompanied by a statement indicating
the amounts of turnover or, as the case may be, gross receipts, gross profit,
expenses and net profit of the business or profession and the basis on which
such amounts have been computed, and also disclosing the amounts of total
sundry debtors, sundry creditors, stock-in-trade and cash balance as at the end
of the previous year.]
67[***]
(10) 68[Omitted by the Finance
(No. 2) Act, 1991, w.e.f. 1-4-1991.]